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Monday, February 4, 2019

Watch Key Trends in Japan for What Will Happen in US

Poor Man Survival

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Watch Japan-Record Pension Fund Loss

Will it portend massive turmoil for the US?

   Most everyone knows, or they should by now, everything comes in cycles, especially economics.  Many factors affect these cycles.  We used to say we have a free market but in reality, we do not.  Our “Fed” affects our cycle by raising and lowering interest rates, artificially controlling the money flow.

However, we all know we can’t continue to spend money we don’t have.  If any of the “New” Democrats get elected in 2020, they plan on spending a lot more money we don’t have which will mean much higher taxes, lower employment and disaster…but wait.

We may not have to wait for another Socialist-Democrat to break the bank. [Rumor has it Karl Marx is being resurrected to run]  Financial breakdowns taking place in Japan could easily mean a breakdown in Europe and eventually in the United States.

Just a few months ago, corporate debt made up 45.5% of GDP... an all-time high at the time. It's currently at a new all-time high of 46%.  Personal debt is at an all time high and Wall Street is holding its breath at the potential losses from student loan defaults and all time high bad auto loans…

If we have learned anything from history, this certainly doesn't look good. It's easy to make the case that a recession is coming sooner rather than later.

Earnings are growing, and businesses aren't borrowing as much. Still, with a debt-to-EBITDA ratio around 3.4 at the end of the second quarter, corporations are more leveraged than they were during the financial crisis, second only to when the ratio spiked to 4 during the tech boom of the early 2000s.

It's important to note that many companies haven't needed to issue new debt because of the savings they received from the recent tax code change.

The China Shanghai Composite Index began crashing one year ago.  It plunged to new 5-year lows last September.

Chinese manufacturers are getting hit with labor shortages, surging wages, even worker rebellions…workers don’t like making $1,000 I-Phones while getting paid peanuts-the Left in America won’t talk about it so long as they’re campaign chests are being fueled by Apple, Microsoft and other Silicon firms…

(Bloomberg) -- The world’s biggest pension fund posted a record loss after a global equity rout last quarter pummeled an asset class that made up about half of its investments.

Japan’s Government Investment Pension Fund lost 9.1 percent, or 14.8 trillion yen ($136 billion), in the three months ended Dec. 31, it said in Tokyo on Friday. The decline in value was the steepest based on comparable data back to April 2008. Domestic stocks were the fund’s worst performing investment, followed by foreign equities.

The EU and Japan Working Hard to Keep Trade Alive

The European Union and Japan on Friday ushered in a landmark trade deal they say will boost business between the two economic powers and sends the message that international pacts still have a purpose in an age of increasing protectionism.

The agreement that comes into effect will scrap nearly all tariffs on products both sides trade in. It will have a big impact on Japanese exports of cars to Europe and EU exports of agricultural products like cheese to Japan.

EU foreign policy chief Federica Mogherini said Friday that both sides have “something to celebrate. Today, we have the entry into force of the largest ever free trade area.”


Ever since the European Union was formed in 1979, the entire continent has been drowning in a sea of debt [its socialist policies of unlimited health care, free college, welfare, etc. especially to millions of refugees that swarmed the continent]…of the 28 nations in the EU, 19 are mired in deep debt despite repeated bailout attempts.  The people of Spain, for instance, would have to pony up ALL of their annual income in taxes just for the government to break even!  According to the New York Times, “the EU could dissipate faster than even its detractors could have dreamed.”  Is it any wonder the Brits voted to get out of it?

The euro has lost value [each time I’ve gone there I get more bang for my US dollar]…at its peak in 2007 it was worth $1.59-in Dec. 2018 it dropped in value to $1.13!  I believe the EU will break apart in 2019 and the first financial wave will hit Japan.

After the United States and China, Europe [see above] is Japan’s biggest trading partner.  When that nation sends cars, cameras and other goods to Europe, it expects to get paid.  If they don’t, or if they get paid in worthless euros, the fault lines in Japan’s economy will widen [Think about why the Fed prints the dollar in overtime and pays its national debt in the same fashion…each year our dollar is worth less and less, citizens have much less buying power…the Fed steals from American taxpayers in this fashion].

Like America, Japan economy is built on a house of cards which could fall:

The national debt in Japan is even WORSE than any country in Europe, including Greece or Spain-it has the biggest deficit in the world:  more than one quadrillion yen.

That’s more than two and half times their entire economy.  They continue to add to their debt at about 96 trillion a year but because they still have a strong manufacturing base [something Trump has been trying to restore in America] and healthy trade balance and as long as Europeans continue to purchase Hondas, the Japanese are able to keep their Ponzi scheme afloat.

But Japan has a second problem that is faces and its populace is not dumb [unlike many Americans]…they know their debt is not sustainable.  They know their pension plans and social security system is at risk [we’ve posted many warnings here about at-risk government pensions for nearly EVERY state] so many citizens have been hoarding money at alarming rates, decreasing the amount of cash in circulation in the economy.

Citizens in Japan are savers, unlike Americans, and were aghast at those who were struggling after missing one check during the government shutdown!

However, the Japanese have suffered through four recessions in a row since 2008 and as a nation this makes them less likely to get out of debt as they print money in hopes of stimulating their economy just as the Fed did here.

When the euro falls, it will take the yen with it and when that happens…there is only one country that is in worse shape than Japan [and the majority of its citizens are in worse shape as they are not prepared for any kind of emergency]…THE UNITED STATES!

We have the most debt at $21 trillion but if you include what the government owes its veterans, Medicare/Medicaid recipients [or what the ‘New’ Democrats are promising] and our debt comes closer to $127 trillion!

The Fed and the government have no more ‘rabbits’ left to pull out of their hat for rescues…they’ve lowered interest rates, they’ve pumped cash into the banking system in exchange for bonds and securities [fewer nations are going to be interested in buying them if Europe and Japan are in the toilet].  Global bond markets and investors will start to dump US Treasury bills no matter how high the interest rates go.

Pensions and annuities that millions depend on will vanish overnight.  Without reserves, the government will have little choice except to lay off its massive 2.7 million workforce…so will state and local governments.  No more food stamps or welfare handouts.  There will be rioting as generations of families accustoming to living on ‘dole’ will revolt.

The government will use force to secure public order.  It will steal private pensions, private food hoards and more and redistribute supplies to the masses as most Americans have forgotten how be self reliant, how to even plant a simple garden…gangs, who already have guns, will roam freely, robbing citizens who have been stripped of their gun rights by politicians and anti-gun activists.

None of this will happen overnight.

What to Look For

My grandfather left his home in Poland several years before Hitler achieved total power and came to America.  Once he saw that Hitler was restricting gun ownership in Germany, restricting how much money citizens could carry or take with them outside of the country when traveling, when documents were needed to travel within their own country, when it became ‘politically incorrect’ to speak one’s mind on many subjects…he got out of Dodge!

My deceased mother-in-law who lived in Germany during the war had said the same thing [before she passed] about the growing restrictions here, the complete lack of privacy and the need for a Social Security number to do everything,  passport requirements just to visit Canada and more…she worried about what was happening in America.

Some financial gurus are forecasting this will be the last and fastest run-up in stocks we’ll see in our lifetime and the Dow will likely hit 45,000 by 2020 even with Trump’s trade war with China [which should be a clear message to US manufacturers:  make goods in this country…my political science professor and economics professor both agreed on a simple maxim:  Once a nation stops producing goods, that is the beginning of its decline]!

Personally, when I figured out the economy was going to tank in 2008-09 I warned all of my readers and friends to get out of the stock market, get out debt, and to buy small farms and to load up on silver and gold.  Those who heeded my advice were happy.  Several of us unloaded our portfolios and high-end mortgages and placed our cash into small farms…we bought one outright-no mortgage and its value continues to increase!

If you do keep money in the stock market, and keep in mind I’m not a stockbroker or financial advisor so always take my advice with a grain of salt…but here’s what I tell my own family.

Stick with basic, proven winners that include:  firms such as Hershey Chocolate, Wal-Mart, Dollar General, Green-Dot Pre-paid Mastercard, precious metals, and defense stocks which are geared to hypersonic research and computer/espionage technology.

 To borrow from an old World War I saying, right now the situation is serious, but it’s not hopeless.

Yours for a more secure future,

Bruce ‘the Poor Man!’


Final Notes…

Contributors and subscribers enable the Poor Man Survivor to post 150+ free essays annually. It is for this reason they are Heroes and Heroines of New Media. Without your financial support, the free content would disappear for the simple reason that I cannot keep body and soul together on my meager book sales & ecommerce alone.


Whether you’re an experienced home defense guru or a complete amateur, the best way to prepare against a burglary or home invasion is to prevent it from happening in the first place. But no matter how watchful you are, sometimes you have to sleep, and some thieves know how to get around the standard home security measures.

In case that happens, there are many unusual methods to protect your family and valuables--methods that don't involve moving out of your 3-bedroom house and into a fortified castle.

Here are 7 unusual home security tips you probably didn’t know...



Free:  Economics in One Lesson - Something the ‘new’ Democrats should read!


Digitized Silver Coins?

Is expected to become viable soon via the LODE token:  “The emergence of distributed ledger technology inspires us to imagine a new paradigm, one in which silver is restored to the economic system and used as a utility to settle trade and commerce or for speculation. LODE is constructing two cryptographic assets, each representing a unique relationship to silver bullion.  These assets will be authentic, and transparent…”


Bullion-backed cryptocurrencies would solve a number of problems which have discouraged me from personally getting involved previously.  I’ve signed up to learn more as information becomes available and will pass along what I learn.

Credit Card Issuers are Cutting Credit

Some credit card firms are such as Discover Card say they are reducing credit lines and in some cases closing inactive cards due to uncertainty about the how long the US economy will stay strong before a downturn makes it harder for card users to pay their bills.

People need to become more self-reliant, not more dependent on government.

How to Survive the War on the Middle Class

 Download here:


How to Set Up Guaranteed Lifetime Income: One of Americans' biggest worries about retirement is running out of money. These concerns are not without merit. Americans have to save and plan for their own retirement, and many people aren't saving nearly enough. U.S. News & World Report

What We Can All Learn from the Government Shutdown-How Little Americans Save

Sobering State of Americans Personal Finance-PDF


Finally, grab an emergency power cell!

Having the Patriot Power Cell on-hand for emergencies keeps your essential electronics up and running in case you need to call for help. 

“The Cell is a workhorse of power — it’ll charge your phone soup to nuts 3 to 8 times… I think of the Patriot Power Cell as “everyday prepared.” Awesome for travel or avoiding inconveniences while saving your bacon in an outage. It’s a MUST HAVE for your survival lineup."

10,000 mAh Battery/Water Resistant/2 LED Flashlight/1.5 Watt Solar Panel/6-Hour Charge Time

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Additional Resources


How to Survive the War on the Middle Class

14 of the best reports I’ve assembled on protecting your freedom-Download link.





Social Chaos Survival Guide: Savvy Precautions To Make You Self-Reliant

The 75 most populous cities’ total unfunded debt is approximately $330 billion. Most of this debt comes from unfunded retiree benefit promises, such as retiree healthcare debt and pensions. Unfortunately, one of the ways the cities help make their budgets look balanced is by shortchanging public pension funds.

Gold’s move come as the Federal Reserve is expected to strike a dovish tone in its monetary policy statement and in central bank chair Jerome Powell’s ensuing press conference. Central bank officials, including Powell, have been hesitant to signal further tightening in monetary policy following its December hike. In two events at the start of the year Powell said that because of low inflation pressures, the Federal Reserve can be “patient” on interest rate hikes. According to media reports, the central bank could also signal a slowdown in its balance-sheet reduction program, which Powell has previously described as on auto-pilot.

When asked what his current top commodity pick is, Global Head of Commodities Research in the Global Investment Research Division at Goldman Sachs Jeffrey Currie doesn't hesitate: "Long gold."

Many workers assume that Social Security will suffice in retirement because their living expenses will go down once they stop working. The reality, however, is that things like housing and transportation tend to only drop modestly, if at all, during retirement. The reason? While many seniors enter retirement with their mortgages already paid off, as homes age, they tend to require more repairs and maintenance, the cost of which can be enough to offset an absent mortgage payment. The same holds true for owning a car -- though retirees don't have commuting costs to contend with, they still have to worry about insurance and auto maintenance, which can be far more expensive than filling up a vehicle's tank twice a week.

A Smoking Frog Feature, Shallow Planet Production


Larry said...

Meaty material-gives me a lot to think about.

Wendy said...

I do believe America and the world is headed for some seriously challenging times and your article seems to indicate a means of warning readers who to read the signs and how to prepare better-thanks.

Sam said...

In the Land of the Free, the average checking account now pays just 0.06% interest, while the rate of inflation is hovering around 2%.
This means that anyone who tries to be responsible and save money for the future is WORSE OFF after adjusting for inflation.
Bear in mind that an economic crisis is like any other crisis: an opportunity for politicians to capitalize on people’s fear to pass dangerously ambitious legislation that wouldn’t stand a chance under normal circumstances.
Think back to 9/11. People were so panicked and terrified that they didn’t notice or care that the government passed Orwellian legislation like the USA PATRIOT Act.

The next recession will likely help sweep the socialists into power in the US

Yvonne said...

You sure won't see this on CNN! Thanks for this post.